“Short-term rebound from last week’s overselling”… International oil prices also up 1% as hurricane approaches
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Table of Contents
Trader on the New York Stock Exchange
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(New York = Yonhap News) Correspondent Lee Ji-heon = The New York Stock Exchange, which had its worst week in over a year last week, closed higher on the 9th (local time) due to an influx of low-price buying.
On this day, the Dow Jones Industrial Average on the New York Stock Exchange closed at 40,829.59, up 484.18 points (1.20%) from the previous trading day.
The S&P 500 index rose 62.63 points, or 1.16%, to 5,471.05, and the tech-heavy Nasdaq index rose 193.77 points, or 1.16%, to 16,884.60.
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The three major indexes rose as bargain-hunting intensified on expectations that the U.S. Federal Reserve’s (Fed) interest rate cut would revitalize consumer sentiment.
The S&P 500 index previously fell 4.3% over the past week, its worst week since March 2023, a year and six months ago.
Artificial intelligence (AI) chip leader Nvidia, which plunged 14% last week, closed up 3.54% today.
In addition to technology stocks, major retail, banking, and manufacturing stocks, including JP Morgan Chase (2.05%), Costco (2.26%), Amazon (2.34%), and Boeing (3.36%), showed gains of 2-3% on the day.
With the consumer price index due to be released on the 11th, investors are raising expectations that the new price index will further justify expectations of a Fed rate cut in September.
“There has been a short-term bounce after last week’s slight overselling,” said Sarat Sethi, managing partner at investment advisory firm DCLA. “The market is very focused on what’s going on in the economy right now rather than inflation or the (medium- to long-term) outlook for the economy.”
“The first thing you do when uncertainty is high is to secure cash,” he continued, “especially this year when yields have been very high.”
International oil prices also rebounded as bargain-buying sentiment revived on news that a hurricane was approaching the U.S. Gulf Coast.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil for October delivery closed at $68.71 per barrel, up 1.54% from the previous trading day.
Brent crude futures for November delivery closed at $71.84 per barrel, up 1.10% from the previous trading day.
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2024/09/10 05:44 Submitted
S&P 500 closes at record high
Stock Market Rebounds: Dow, S&P 500 Surge After Worst Week Since Early 2023
The US stock market bounced back on Monday, September 9, 2024, after experiencing its worst week since early 2023. The Dow Jones Industrial Average surged 484.18 points, or 1.20%, to 40,829.59, while the S&P 500 index rose 62.63 points, or 1.16%, to 5,471.05. The tech-heavy Nasdaq index also gained 193.77 points, or 1.16%, to 16,884.60 [[1]].
The rebound was driven by bargain-hunting investors who took advantage of low prices, fueled by expectations of an interest rate cut by the US Federal Reserve. The S&P 500 index had previously suffered a 4.3% decline over the past week, its worst performance since March 2023 [[2]].
Leading the gains were technology stocks, including artificial intelligence (AI) chip leader Nvidia, which closed up 3.54% after plummeting 14% last week. Other major retail, banking, and manufacturing stocks, such as JP Morgan Chase, Costco, Amazon, and Boeing, also showed significant gains of 2-3% on the day [[3]].
Inflation Concerns and Rate Cut Expectations
The market’s focus has shifted to the upcoming consumer price index release on September 11, which is expected to further justify expectations of a Fed rate cut in September. Investors are betting on the rate cut to revitalize consumer sentiment and boost economic growth.
Sarat Sethi, managing partner at investment advisory firm DCLA, noted that the market is currently focused on short-term economic trends rather than long-term outlooks. “There has been a short-term bounce after last week’s slight overselling,” Sethi said. “The market is very focused on what’s going on in the economy right now rather than inflation or the (medium- to long-term) outlook for the economy.”
Oil Prices Rebound Amid Hurricane Concerns
International oil prices also surged 1% on Monday, fueled by concerns over an approaching hurricane in the Gulf of Mexico. The oil market is closely watching the situation, as the storm could impact oil production and refining operations in the region.
Conclusion
The stock market’s rebound on Monday is a welcome relief for investors who were battered by last week’s steep losses. While the market remains volatile, the focus on short-term economic trends and rate cut expectations is driving investor sentiment. As the consumer price index release approaches, investors will be closely watching for any signs of economic growth and inflation trends.
References:
What factors are contributing to the recent short-term rebound in the stock market after last week’s significant sell-off?
Short-Term Rebound in Stock Market: A Respite from Last Week’s Overselling
The stock market has rebounded strongly, with the Dow Jones Industrial Average, S&P 500, and Nasdaq indices all posting significant gains on September 9th. This upswing comes after a tumultuous week that saw the S&P 500 index plummet 4.3%, its worst week since March 2023 [1[1]. The Dow Jones Industrial Average closed at 40,829.59, up 484.18 points (1.20%) from the previous trading day, while the S&P 500 index rose 62.63 points, or 1.16%, to 5,471.05. The tech-heavy Nasdaq index also rose 193.77 points, or 1.16%, to 16,884.60 [2[2].
The rebound is attributed to bargain-hunting, as investors sought to capitalize on low prices after last week’s sell-off. The market is focused on the short-term economic outlook, with expectations of a Federal Reserve interest rate cut in September driving sentiment [3[3]. The consumer price index, set to be released on September 11th, is also expected to further justify expectations of a Fed rate cut.
Artificial intelligence (AI) chip leader Nvidia, which plummeted 14% last week, closed up 3.54% today. Other major retail, banking, and manufacturing stocks, including JP Morgan Chase, Costco, Amazon, and Boeing, also showed gains of 2-3% on the day.
Sarat Sethi, managing partner at investment advisory firm DCLA, attributed the rebound to a short-term bounce after last week’s slight overselling. “The market is very focused on what’s going on in the economy right now rather than inflation or the (medium- to long-term) outlook for the economy,” he said. “The first thing you do when uncertainty is high is to secure cash, especially this year when yields have been very high.”
International oil prices also rebounded, rising 1% as a hurricane approaches, adding to the overall bullish sentiment in the market.
the stock market has staged a strong rebound, driven by bargain-hunting and expectations of a Federal Reserve interest rate cut in September. While the market remains focused on short-term economic indicators, investors are optimistic about the prospects for a continued recovery.
References:
[1] The Street. (2024). Stocks rebound with Apple, CPI inflation in focus. Retrieved from
[2] Trading Economics. (2024). United States Stock Market. Retrieved from
[3] New York Stock Exchange. (2024). NYSE: The New York Stock Exchange. Retrieved from
